Transfer on death deed

Thanks to the 84th Legislature, Texans have a new, easy way to transfer real property to someone else upon their death. It does not involve going through probate court, which can be a lengthy and costly process. It also allows the owner to keep the exact same rights to the property that they’ve always had while they are alive – they can get the property tax exemption, use it as collateral on a loan, or sell the property as they like.

It works similarly to a life insurance policy or a payable on death bank account because the asset passes directly to the beneficiary named in the transfer on death deed outside the probate system when the owner dies.

While the transfer on death deed is a welcome benefit for all Texans, it brings substantial relief to low-income homeowners. Failure to transfer clear title to property is a significant problem for low-income homeowners. The homes are often informally passed down to a family member, but that person is at risk of losing the home when clear title cannot be shown.

When a natural disaster strikes and a property has been informally handed down through generations, the people living there cannot qualify for FEMA benefits because they cannot show that they are the legal owners. The same is true for property tax exemptions. These homes are often abandoned, causing blight and an invitation to crime to the neighborhood.

Now, people can convey clear title to their property by completing a transfer on death deed form, signing it in front of a notary, and filing it in the deed records office in the county where the property is located before they die at a cost of less than fifty dollars.

The Texas Access to Justice Commission created a do-it-yourself Transfer on Death Deed Kit that includes forms and instructions for completing a transfer-on-death deed as well as a revocation form in the event that someone wants to cancel or change the transfer on death deed, and an affidavit of death that must be filed when the property owner dies. The kit is available on TexasLawHelp.org.

A transfer on death deed is a new way for Texans to pass down real property outside of probate court. For less than $50, low-income Texans can now pass clear title to their family homes without the expense obtaining legal assistance or paying probate costs. - See more at: http://www.texasatj.org/policy-0#sthash.tLuYjFpU.dpuf
A transfer on death deed is a new way for Texans to pass down real property outside of probate court. For less than $50, low-income Texans can now pass clear title to their family homes without the expense obtaining legal assistance or paying probate costs. - See more at: http://www.texasatj.org/policy-0#sthash.hJQpDKZr.dpuf
A transfer on death deed is a new way for Texans to pass down real property outside of probate court. For less than $50, low-income Texans can now pass clear title to their family homes without the expense obtaining legal assistance or paying probate costs. - See more at: http://www.texasatj.org/policy-0#sthash.hJQpDKZr.dpuf